Economic sentiment improves in November

Economic sentiment in Cyprus improved this November, on the basis of a business and consumer survey by the University of Cyprus (UCY) Economic Research Centre.

According to the survey, in November 2019, economic sentiment in Cyprus improved as the Economic Sentiment Indicator (ESI-CypERC) increased by 1.2 points compared with October 2019.

The increase, it says, "resulted mainly from stronger business confidence among firms in services and construction as well as from confidence improvements among consumers."

The increasei n the Services Confidence Indicator was driven by firms’ more favourable views on their past performance (business situation and demand) and upward revisions in demand expectations, it adds.

The drop in the Retail Trade Confidence Indicator was due to downward revisions in sales expectations.

According to the survey the Construction Confidence Indicator improved mainly due to upward revisions in employment expectations.

At the same time, the Industry Confidence Indicator rose marginally as a result of firms’ improved views on the current level of their order books.

The increase in the Consumer Confidence Indicator was driven "by more favourable assessments of the households’ financial situation, upward revisions in consumers’ expectations regarding the economic conditions in the country and consumers’ stronger intentions to make major purchases," it says.